Voters on Tuesday made Ohio the latest state to legalize recreational use of marijuana. In theory that could help pot stocks, but they traded mixed early Wednesday.
The
AdvisorShares Pure US Cannabis
(ticker: MSOS) exchange-traded fund fell 2.8% in premarket trading.
Curaleaf Holdings
(CURLF) was down 0.3%, but
Tilray Brands
(TLRY) advanced 1.1%.
Ohio became the 24th state to allow the recreational use of marijuana after making it legal for medical use in 2016. At least four more states will put recreational marijuana on a ballot next year.
The AdvisorShares ETF has run into trouble this year with its exposure to just a few names, along with concerns that redemptions could make it harder to operate. The fund jumped in early August as President Joe Biden considered scheduling marijuana at the federal level, which would be a step toward decriminalizing it.
In other election news, Ohio also put abortion rights into the state’s constitution. It was one of a series of victories for Democrats, who also won in Virginia’s legislature and re-elected Andy Beshear, the Democractic governor of Kentucky.
The success of the Democratic Party in Ohio, Virginia, and Kentucky may be interpreted as bellwether for next year’s presidential election, when Republican Donald Trump is widely expected to challenge incumbent Joe Biden.
In Colorado, voters rejected a measure that would have lowered property taxes. In Texas, a ballot to provide a tax break to homeowners by increasing the homestead tax exemption passed. Texas voters also approved measures authorizing a tax exemption for child care businesses and one that prohibits state lawmakers from imposing a wealth tax.
Write to Brian Swint at [email protected]
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